What's Really Raising Your Life Insurance Costs
NEW YORK (TheStreet) -- Consumers may not give the matter too much thought, but rates on life insurance vary widely, and the cost for most policies can rise rapidly based on a wide variety of factors -- some of them avoidable.
Their formulas are complicated, but insurance companies cite key demographic factors and personal health and lifestyle habits that can affect policy costs:
Smoking. According to data from InsuranceQuotes.com, smokers pay on average a whopping 235% more than non-smokers for the same life insurance policy. Over the course of a full year, smokers pay $1,462 more than non-smokers for insurance. Put another way, the average 45-year-old non-smoking female pays $45 per month for insurance, while a 45-year-old woman who smokes pays $167. Quitting cigarettes is a no-brainer for many reasons, but saving on life insurance (and health insurance) should be on the list.
"You can save a lot of money by getting life insurance while you're young," says Laura Adams, a senior analyst at InsuranceQuotes.com. "By locking in a level-term policy in your twenties or early thirties, you will benefit from much lower rates while protecting your loved ones."
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